Asset Manager Mergers Can Warrant Fresh Looks From Plan Sponsors

Financial service companies that track and allocate U.S. workplace retirement assets are merging and acquiring new practices at a record pace, often leaving employers unaware of the fiduciary responsibilities triggered by what can be mistaken for a mere change in name.

Great-West Lifeco Inc.-owned Empower Retirement finalized a $3.6 billion purchase of Prudential‘s retirement business in July, the latest in a series of recent industry buy-ups that has seen big names like BB&T, Mercer, and New York Life combine or relinquish their pension portfolios.

Technological leaps have led recordkeepers and third-party administrators to scale their businesses ...